Rise of South Korean Traders in the Digital Asset Market
Traders in Asia, particularly South Korea, have played a significant role in the recent surge in digital asset market volume. Data from CCData shows a notable increase in market share for South Korean-based exchanges.
South Korean Traders Drive Altcoin Surge
Since early October, the digital asset market has experienced a rally, driven by growing optimism over the potential authorization of U.S. exchange-traded funds to hold digital assets. bitcoin has seen a nearly 40% increase in value over the past month, while smaller tokens like Solana and Avalanche have witnessed even more substantial surges.
Analysts at CryptoQuant, a blockchain data platform originating from South Korea, highlighted that traders in South Korea are playing a significant role in the increasing trading volume of altcoins. Chung Hochan, CryptoQuant’s Head of Marketing, attributes this trend to the absence of a futures market for retail investors in South Korea.
This absence has led retail investors in the country to explore substantial leverage opportunities within the crypto market, particularly with altcoins. The increased interest contributed to the remarkable expansion of the altcoin market compared to other investment assets.
Growth of South Korea’s Crypto Community
South Korea has gained recognition for its robust blockchain and crypto community, with figures like Terraform Labs co-founder Do Kwon hailing from the country. Despite setbacks, many crypto firms view South Korea as a significant opportunity, especially amid increasing regulatory challenges in the United States.
In response to the evolving landscape, South Korean regulators are actively monitoring the over-the-counter (OTC) crypto market to prevent its misuse for criminal activities. The South Korean Supreme Prosecutors’ Office Criminal Law Academy recently organized a session addressing challenges and issues related to virtual currencies. Deputy Chief Prosecutor Ki No-seong and Park Min-woo from the Financial Services Commission expressed concerns, particularly emphasizing issues associated with over-the-counter (OTC) trading and the deposit business of virtual currencies.
### News source: cryptopotato.com